In Criminal Misc. Application No. 2378 of 2023 -GUJ HC- Gujarat High Court grants regular bail in ongoing GST case, observes co-accused already granted regular bail by co-ordinate bench
Justice Nirzar S. Desai [26-06-2023]

Read Order: Mohammad Abbas Shabbirali Savjani V. State of Gujarat

Chahat Varma

New Delhi, July 14, 2023: The Gujarat High Court has granted regular bail to the applicant in a case involving offences under the Central Goods and Services Tax Act and the Gujarat Goods and Services Tax Act. The court took note of the ongoing investigation, despite a previous order granting additional time for its completion. The court also observed that the co-accused in the case had already been granted regular bail by a Co-ordinate bench of the court and found it difficult to accept the distinction in the role of the present applicant compared to the other co-accused who had been released on bail.

The applicant had filed the present bail application under Section 439 of the Code of Criminal Procedure, 1973, in connection with a case registered with the Office of Deputy Commissioner of State Tax, Enforcement, Division-1, Ahmedabad.

During the hearing, the Senior Advocate representing the applicant pointed out that in a previous order dated 19.04.2023, the court had granted two months' time to the State for further investigation. The advocate highlighted the fact that no additional report had been submitted by the Investigating Officer until the present date. The advocate further emphasized that the material currently on record would be subject to evidence at the trial stage, and denying bail at this stage would amount to pretrial conviction. They also drew the court's attention to the fact that several co-accused facing similar allegations had already been granted regular bail by a Co-ordinate bench of the court. The only difference was that the co-accused were accused of tax evasion of a different amount, but their roles were similar to that of the present applicant. The Public Prosecutor representing the respondent-State opposed the bail application, arguing that the investigation was still ongoing and the magnitude of the scam should not be overlooked.

After considering the arguments and examining the material on record, the single-judge bench of Justice Nirzar S. Desai concluded that this was a suitable case for granting bail.

Consequently, Justice Nirzar S. Desai imposed certain conditions, including restrictions on the applicant from entering Bhavnagar District for a period of six months and from leaving the state of Gujarat for six months, except for court appearances and meetings with the investigating officer related to the present case or any other matter. It was further clarified that if the applicant violated any of these conditions, the Sessions Judge concerned will have the authority to issue a warrant or take appropriate action. No additional financial conditions were imposed in this case.